“Practically Everything is Out of Control”
Mar 17, 2011
Posted by Jody Eisenman | Filed under Uncategorized
“There is talk of an apocalypse and I think the word is particularly well chosen,” European Union’s energy commissioner Günther Oettinger said today, according to various reports. “Practically everything is out of control. I cannot exclude the worst in the hours and days to come.” The head of the world’s nuclear watchdog, meanwhile, said it was not accurate to say things were “out of control” in Japan, but the situation was “very serious,” with core damage to three units at the plant, around 240 kms (150 miles) north of Tokyo.
I do not pretend to understand the complexities of a nuclear meltdown. Right now, I can only report what these experts are saying. “Events unfolding in the Japan incidents appear to be more serious than Three Mile Island. To what extent, we don’t know that. They are unfolding hour by hour,” Energy Secretary Steven Chu said earlier today at the hearing. On Thursday the U.S. Embassy in Tokyo urged citizens living within 50 miles (80 kms) of the Daiichi plant to evacuate or remain indoors “as a precaution”, while Britain’s foreign office urged citizens “to consider leaving the area”.
The warnings were not as strong as those issued earlier by France and Australia, which urged nationals in Japan to leave the country. Russia said it planned to evacuate families of diplomats on Friday.
The current estimates of losses in Japan are between $125 and $200 billion.
Meanwhile, when word of Oettinger’s comments hit the tape, the market dropped into its’ own meltdown. At the close, the DJIA had dropped 242 more points, and the S & P dropped 25. As of the close today, the stock market is now in negative territory for the year. It’s obvious that market sentiment has changed dramatically. While previously, negative events were quickly forgotten, now the market is reacting with severe downward pressure. Meanwhile, market volatility as measured by the VIX, has shot up to almost 30. It was trading in the teens for most of the year. We can all hope that the situation in Japan does not get worse.
